- EIA Report: stockpiles dropped 600K vs -2.12M eyed
- Crude production falls to 12.2 million bpd (lower boundaries of this year’s range)
- Gold struggles as Fed leaves door open for more hikes
Crude prices softened after the EIA crude oil inventory report stockpiles fell less-than-expected as surging gasoline prices weighed on demand. Gas is almost over 10 cents a gallon according to AAA and that rising trend might continue going to the end of summer. Crude exports also rose above the 4 million barrel a day threshold, which shows overseas demand is growing as OPEC+ tightens the oil market.
Gold prices remained heavy after the FOMC statement as Fed swaps continue to price in small chances of an additional rate hike. The Fed will probably see no change with rates in September and when the market is confident that November will be a pause, then gold might break out higher. Gold is now in wait-and-see mode for the rest of the big earnings releases and if the ECB and BOJ can surprise markets.
Bitcoin caught a modest bid after the Fed decision triggered a modest risk-on rally. The Fed is most likely done raising rates and that should provide some relief to the interest rate sensitive sectors in the cryptoverse.
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